The Comeback America Initiative has released a report with illustrative options to put the country on a sustainable fiscal path under two different scenarios. The report, "Restoring Fiscal Sanity,” includes options on domestic and defense spending, entitlement reform and tax reform.
“Putting our nation’s finances in order is a critically important and challenging endeavor, said David M. Walker, former comptroller general of the United States and the founder and CEO of the Comeback America Initiative. “In order to effectively address these challenges, Congress and the White House must act soon.”
The report’s “Preemptive Framework” includes the reduction of discretionary spending to 2008 levels but with $500 billion for infrastructure and other investments to prevent a double-dip recession and stimulate job growth. It also includes reforms to Social Security and Medicare, reductions in our international military commitments, and expiration of the 2001 and 2003 tax cuts.
The report’s “Reactive Framework,” while addressing the same areas, is designed as a backup plan in the event of a financial crisis similar to 2008. To reassure the American public and foreign lenders, it has dramatic changes that include a Presidential line-item veto, a debt cap and a balanced budget requirement except in times of war or other significant events.